Rapeseed oil prices in Europe were higher on Friday as drought in Canada and diminishing crop prospect in the European Union looked set to tighten supplies. Asking prices for EU rapeseed oil were raised by between 7.00 and 10.00 euros a tonne. "Western Canada is now 40 percent behind average on rainfall and forecasts for temperatures of over 30 degrees Celsius and further dryness this weekend has sent Canadian canola values to further highs," merchant Frontier Agriculture said in a report on Friday.
EU rapeseed futures also advanced with August climbing to a contract high of 395.75 euros a tonne on Friday before giving up some ground in late trade. The front month was up 3.25 euros or 0.8 percent at 390.75 euros at 1611 GMT. Lower rapeseed crop are also expected this year in the European Union and Ukraine. The International Grains Council earlier this week cut its forecast for the EU rapeseed crop to 21.3 million tonnes, down from a previous projection of 21.9 million and well below last year's 24.3 million.
Palm oil prices were flat to slightly higher as Malaysian futures recorded their first weekly gain in three weeks. Dealers said the mood was cautious as they waited to see how Indonesia's new palm export levies would affect prices. Indonesia, the top global palm producer, released a report on Thursday detailing levy rates for a range of palm products, including biodiesel, expected to take effect from July. Palmkernel oil and coconut oil asking prices were raised but no trades were reported.